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Beyond Cash: Donor friendly gift options

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Presentation on theme: "Beyond Cash: Donor friendly gift options"— Presentation transcript:

1 Beyond Cash: Donor friendly gift options
Anne Vittoria Director of Gift Planning Mount Holyoke College

2 Results from 1 Million Nonprofit Tax Returns 2010-2015
Prof. Russell James III, JD, PhD, CFP, philanthropy researcher at Texas Tech University

3 NON CASH APPRECIATED ASSETS
Securities: Stocks, Bonds, Mutual Funds

4 DOUBLE DOUBLE TAX BENEFIT WHEN GIVEN TO CHARITY
Securities: Stocks, Bonds, Mutual Funds DOUBLE TAX BENEFIT WHEN GIVEN TO CHARITY DOUBLE Charitable Deduction for Full Market Value (with 5 year carry over) Avoid Capital Gain

5 GIVE A SECURITY KEEP A SECURITY I’ve decided to give $10,000 to
Camp this year I have $10,000 in cash as well as securities. The securities have performed really well and increased in value over the past few years. I’d like to keep them in my portfolio.

6 GIVE A SECURITY KEEP A SECURITY
? Transfer $10,000 of favorite securities to Camp Double Benefit: charitable deduction for full $10,000 pay no capital gain tax when given to charity Use $10,000 cash to re-purchase favorite securities Benefit: same amount invested in the favorite security higher cost basis, saving future capital gains tax

7 QUALIFIED CHARITABLE DISTRIBUTION Individual Retirement Account
Making a gift from an Individual Retirement Account Attractive to donors who do not itemize deductions 2018 increase in standard deduction will mean fewer people itemizing Keeps reportable income lower because it passes directly to charity not considered income Potentially avoiding Social Security and other income from being taxed at a higher rate

8 QUALIFIED CHARITABLE DISTRIBUTION
Donor must be age 70 ½ or older when the gift is made Gift must come from a traditional IRA 401(k), 403(b), SEP IRA, and other retirement accounts do not qualify The gift must come directly from the IRA to charity Able to distribute any amount, $1 to $100,000

9 QUALIFIED CHARITABLE DISTRIBUTION
? Satisfies all or a portion of the Required Minimum Distribution (RMD) if not already taken in that calendar year Excluded from income therefore not available as an income tax charitable deduction Donors should contact their fiduciary company to initiate a charitable distribution

10 NAME CAMP A BENEFICIARY
Last Will and Testament Living Trust

11 NAME CAMP A BENEFICIARY
? I give to NAME OF CAMP in LOCATION, Federal Tax Identification Number: XX-XXXXX, (___% of my residuary estate) or (all of my residuary estate) or (the sum of $ ) to be used for the benefit of CAMP as the Trustees thereof may direct.

12 DONOR ADVISED FUNDS DAF is a charitable account sponsored by a public charity that donors can use to support their philanthropy Donor makes an irrevocable gift to the sponsoring public charity gets a tax deduction and advises on where distributions are to be made Good for donors wanting to make a larger gift in one year (often for tax purposes) with distributions given over a period of years

13 DONOR ADVISED FUNDS National Philanthropic Trust 2017 DAF report

14 DONOR ADVISED FUNDS National Philanthropic Trust 2017 DAF report
Growth in distributions to charity National Philanthropic Trust 2017 DAF report

15 ? DONOR ADVISED FUNDS Who are your donors giving through DAFs?
Can they be cultivated to give more through their DAF? Is your camp named an ultimate beneficiary of their DAF? Be certain of the IRS regulations around crediting and restrictions around using DAFs for pledge payments and restrictions around events and gifts.

16 QUESTIONS ? ? ?

17 Resources: Allen Thomas – Real Estate https://thomaspg.com/about-us
Chronicle of Philanthropy – Working with Donor-Advised Funds: The Basics Fidelity Charitable – Donor Advised Funds – Assistance With Complex Assets Jewish Federations of North America – Planned Giving Information National Association of Charitable Gift Planners – General Information National Philanthropic Trust – 2017 Donor Advised Fund Report Prof. Russell James III, JD, PhD, CFP – Philanthropy Researcher at Texas Tech University Schwab Charitable – Donor Advised Funds Sharpe Group – Your Guide to Effective Giving After Tax Reform Vanguard Charitable – Donor Advised Funds


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